IBM Misses Top Line, Boosts EPS Forecast, Stock Slides After Hours

Putting the cherry on top of an ugly day for bulls comes global tech vanguard IBM, which did not use the DVA wildcard and still saw its earnings beat already reduced expectations of $3.22, printing at $3.28... but... it did miss the consensus top line of $26.34 billion by just under $200 milllion, at $26.16 billion. Since this the first time in probably forever that Big Blue has not beat the top line, the stock is certainly not too happy after hours. That this is happening despite the company's boost to its EPS forecast is quite troubling.

Also notable is that total ST and LT debt increased by $1.5 billion from $28.5 billion at December 31, to $30 billion at the end of Q3: at least someone is benefitting from relevarging at all time low yields.

From the release:

"In the third quarter, we drove revenue growth, margin expansion and increased earnings as a result of our innovation-based strategy and continued investment in growth initiatives," said Samuel J. Palmisano, IBM chairman, president and chief executive officer. “Growth markets delivered outstanding revenue performance across software, hardware, and services and contributed to the company's expanded margins. We also achieved strong results in Smarter Planet, business analytics and cloud.

"Based on this performance, we are raising our 2011 full-year operating earnings per share expectations to at least $13.35."

Full-Year 2011 Expectations

IBM raised its expectations for full-year 2011 GAAP diluted earnings per share to at least $12.95 from at least $12.87; and operating (non-GAAP) diluted earnings per share to at least $13.35 from at least $13.25. The 2011 operating (non-GAAP) earnings exclude $0.40 per share of charges for amortization of purchased intangible assets, other acquisition-related charges, and retirement-related items driven by changes to plan assets and liabilities primarily related to market performance.

are you just anti corporation for the sake of being anti corporation? exactly what problems do you have with ibm. they actually PRODUCE things that are beneficial to society. do you know they are the leaders in merging nano technoogy and pharma--nanomedicine?

Let me tell you a story of how IBM Global Services helps corporate America screw all of the IT sector out of jobs. (HP does this trick too, but not as well.) IBM to big company, "Hey, outsource your IT to us!" Big Company, "OK, let's do this." IBM then "aquires" all the tech staff, slashes pay, benefits, and has you train someone in another country to do your job, so you can get a severace package on your way out. Then, complain that there are no qualified workers in the US of A for some reason, and bring in underpaid slaves on H1-B visas, while hiding profits off-shore. Wrap in helping the US GOVT spy on every american on the Internet, and a splash of patent blackmail to any company coming up the ranks. Kito, I respect your posts and views, but IBM is sucking the life out of america. Also, they made Lotus Notes, which the UN should bring them up on war crime charges for.

I was at the intangible GAP store the other day buying some firesale Next Big Idea intellectual property and I saw IBM there. Hair unwashed. Blue suit had crusty flakes all over it. It looked like they had been pullig all nighters trying to radiation harden chips before fukishima destroys everything they ever built that's not in space.

deja vu all over again - cant remember if it was the 1987 " correction " - but it was BIG BLUE missing earnings and tanking that was the black swan that started the poop hitting the fan ... its off abt 4% or $8 in after hours ....

if i wasnt Canadian i would vote for Kyle Bass for President btw - very impressive dude